Crypto Trading Patterns: A Guide to Charting and Analysis

By Muhammad Yaqub
10 Min Read

If you want to become a seasoned crypto trader, you must learn technical analysis through studying the crypto trading patterns. The crypto trading patterns include chart pattern analysis, boosting trend evaluation skills, and determining future market trends. 

Crypto trading patterns embrace the assessment of price charts and technical analysis to make wise choices. Traders apply a set of charting tools determining either trends or support/resistance levels, as well as indicators contributing to strategical moves for winning trades in cryptocurrencies.

What Are Crypto Trading Patterns?

The crypto trading patterns include trends and formations appearing in price charts. The traders decide the right time for selling and buying digital assets by analyzing those patterns.  Chart patterns help investors to forecast future market trends. They decided to buy, sell, or hold the digital assets based on chart pattern analysis.  


Traders are inclined to buy the assets when the price moves upward creating a bullish market trend. In contrast, if the price tends to fall, putting the bearish market trend, the traders are inclined to sell the assets. 

The investors use different crypto trading patterns with unique features and implications. In the 

technical analysis, the traders analyze the price trend during a certain period. Technical analysis and fundamental analysis are very famous crypto trading patterns applied by traders.

Expand your understanding of technical analysis in cryptocurrency.

The other patterns include reversal and continuation. Some traders prefer another strategy called bilateral patterns. 

The price chart of the cryptocurrency shows two symbols of a trading pair of price tickets. Suppose a crypto trader purchases Bitcoin (BTC) against the United States dollar using the currency pair BTCUSD. So, the first currency, BTC, will serve as the base, and the second currency, USD, will serve as quote currency.  The horizontal price line depicts the most recent trading price of the digital currency. 

The trading task among the two currency pairs causes price fluctuation, creating line charts called Japanese candlesticks. The expert analysts analyze and foresee the possible chart patterns from the movement of lines and candlesticks. The price charts, trade volume, and price changes are basics of technical analysis. 

Why are Crypto Chart Patterns so Important? 

The crypto chart patterns are very important because they help to analyze the past, present, and expected future movements of currencies, including digital assets like Bitcoin. The patterns facilitate the financiers, researchers, and traders to forecast price trends. 

The experts claim that chart patterns help to analyze price trends, trade with profitable currency pairs, and gain more outcomes from digital currency trading. Swing traders must do basic cryptocurrency trading research to gain profit. Scalpers and day traders have too short a time to use the basic cryptocurrency fundamentals properly. If traders analyze the chart patterns carefully, they can successfully get short-term profits. Traders can analyze the patterns in 15 minutes, 4 hours, or daily. 

Moreover, the patterns help the crypto traders to decide the exit and entry locations based on ongoing price chart indications. The future insight helps to understand the future price fluctuation and helps traders’ decision-making.

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How to Understand Crypto Charts?

Understanding crypto charts is very important because traders’ wise decisions play a crucial role in trading profits. Any wrong decision may cost a lot in the highly volatile crypto market. However, traders must understand the following patterns carefully to make expert decisions:


Candlestick Patterns

Candlestick patterns show prices at high, open, and low options during a specific period. It highlights current market trends, like bullish or bearish market behavior. 

Trading Pair

Trading Pair shows the market behavior by analyzing the currency pairs like quote currency (USDT) and base currency (BTC) in the crypto market. 

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Current Price

The currency price indicates the price of base currency (BTC) for quote currency (USDT) in an exchange at recent rates. 

24 Hour Volume

It shows the value of Bitcoin or any digital asset exchanged by a trader during the past 24 hours for the particular asset.  The quote currency volume is expressed in USDT.

Time Unit

The traders may choose the time intervals for market analysis. The time interval may range from one minute to one month. 


The traders can see the highest and lowest price levels within 24 hours. 


Price depicts the differences in the value of a particular currency in the selected period. Candle shows the best price movement in the crypto space at a given time. The analysis of the candle movement shows the current price trend of the currency. The traders select the period according to their choice. 

Trade Volume

Chart analysis is the best way to analyze the trade volume. The candle movement shows the trade volume of cryptocurrencies. The longer bar indicates the high trade volume, while the green bar hints at a price increase, and the red bar shows a decline.

What are The Most Common Crypto Trading Patterns Found on Charts?

Traders can find many crypto trading patterns on the charts. They must learn the patterns and strengthen their visual depiction for wise trading decisions.

Handles and Cup

The handle and cup chart patterns denote high price movement and show bullish market trends. It starts with a ‘U’ shaped cup showing upward movement and price decline for short-term shaping charts as a handle. There are more bit chances of upward price movement and continuing the previous increase as the handle appears.  

cup and handle


If there is a rising wedges movement, it will show bearish market sentiments of two trend lines converging upward and having a sharper upper line than a lower one. Although there are similarities in lines, they differ from ascending triangles to line slope directions. 

If there is a falling wedges movement, it shows a downward slope converging trend and indicates a bullish market trend. If both lines of this pattern slope in the same direction, the lower bar steeps slowly, indicating a bullish market trend. 

trading wedge

Head and Shoulder Pattern

The head and shoulder pattern is very popular in the crypto space. It shows a negative trend and hints at a fall in prices. There are three major indications, “head” indicates a higher main peak, and two lower elevations are called “shoulders”. However, the peak heights, particularly in the shoulders, are precise. 

head and shoulders

Ascending and Descending Triangle

The rising trend line and horizontal resistance line mutually create an ascending triangle, resulting in a bullish market trend. If the price resists, it shows buying pressure and a possible breakout. The descending triangle shows a price-falling trend and bearish market sentiments. If the price falls below the support level, check it carefully; it indicates a possible price decline.

ascending and descending

Double and Triple Top Pattern

If the cryptocurrency price falls compared to the last peak, the double-top pattern forecasts bearish market sentiments. At the same time, the triple-top method has three peaks preceding the support breach, signaling the downward movement and resulting in the weakening of the bullish market trend. 

triple top reversal

Double Bottom

In the double-bottom pattern, the price of an asset creates a W-shaped move. It shows that after two low price movements, there is the possibility of a price increase. It indicates a long-term or intermediate reversal in the overall market trends. 


Successful crypto trading is based on a sound understanding of the crypto trading patterns. The article emphasizes the most widely used patterns in the current market. Traders can better forecast the market using crypto trading patterns while selling and buying digital assets. 

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The trading patterns are also helpful during market fluctuation and give better information for future price movements. Moreover, traders must properly understand the trading pairs, candlestick patterns, 24-hour volume, and current prices to enjoy a successful trading experience.